Should I Sell my Property to Avoid Bankruptcy in New York City?

Should I Sell my Property to Avoid Bankruptcy in New York City?

This is often one of the biggest mistakes people make when they are behind on their bills in New York City. Knowing the right time to file bankruptcy can be hard, but selling property in an effort to avoid bankruptcy is often a bad idea. If your financial situation is becoming this desperate more often than not you will be throwing good money after bad. Most people that sell valuable assets to avoid bankruptcy will lose their nest egg and usually end up filing bankruptcy anyway. If you are considering cashing in a retirement fund or selling a home or valuable assets talk to a bankruptcy attorney about your options first. Having a free consultation doesn’t mean you have to file bankruptcy, and all too often our clients regret not having come to us earlier.

Times they are a changing. A lot of people that would have never considered filing bankruptcy in the past are being forced into bankruptcy by the bad economy. Many people have lost huge portions of their net worth over the past 5 years. But sadly, even though there is a clear downturn in the economy too many people are still refusing to even look into bankruptcy protection as an option. The fact of the matter is millions of people are given a fresh start through bankruptcy every year, but the stigma remains very strong. Selling your property to stay current with your debts might seem like the right thing to do, but you have to ask yourself if it is really right to financially martyr yourself to toxic credit card, medical or personal loan debt. The US Congress doesn’t think so and most of the world’s religious traditions have concepts of debt forgiveness as well. If you are selling assets to avoid bankruptcy you are really only hurting yourself and your family by doing this.

When you file Chapter 7 bankruptcy your assets are basically divided into the things you are allowed to keep, (your exempt property), and the things you may have to liquidate to repay your creditors, (your non-exempt property). Retirement accounts, home equity and so much more falls into the exempt category, and most of the assets people sell off to pay their debts are actually protected in bankruptcy. What’s worse is that many of the bills people are paying by liquidating these assets would be completely eliminated by filing bankruptcy in the first place. Do not cash in retirement accounts or other valuable assets to pay for credit cards, medical bills or mortgage debts before speaking to an attorney.

At the end of the day the most important thing is to be honest with yourself about your financial situation. It can be hard to admit that you may need help, but if you are selling property or cashing in 401K’s to keep up with your bills you are probably a good candidate for bankruptcy already. Most people are pleasantly surprised to hear about the actual fresh start and true debt relief bankruptcy offers. Get the facts for yourself. If you need an affordable bankruptcy attorney in New York City please contact the Law Offices of William Waldner online or at 212.244.2882 to arrange a free bankruptcy consultation today. Our law firm only practices bankruptcy law and maintains a 99% Chapter 7 Bankruptcy discharge record in New York City as of 8/31/16.

**** DISCLAIMER: This article is intended for educational purposes only. By reading no attorney-client relationship has been created. Prior results do not guarantee a similar result for future clients.